AHIPP claim Zoopla is breaking HIPs laws

Friday, 17, Apr 2009 04:05

The Association of Home Information Pack Providers (AHIPP) are claiming property information website Zoopla is breaking the law by contravening Home Information Pack (Hips) laws.

But Zoopla have said they warn users of the 'Tempt Me' feature that they will need a Hip once they decide to market a property for sale, and the feature is merely "hypothetical", akin to having a conversation with a friend.

The AHIPP has called on the government to take immediate action against Zoopla, who they say are "flouting laws surrounding the provision of Hips". Earlier this month changes were brought into the provision of the packs, making them compulsory for all home sellers before their property was marketed for sale.

Zoopla have argued that they post a note on the feature saying "A TemptMe! Price should only be set if you are NOT actively marketing your home for sale. If you decide at any time to sell your home, you will require a Home Information Pack (Hip);" and therefore they say there is no breach of the Housing Act law on Hips.

Mike Ockenden, director general of AHIPP, said: "The estate agent community is required to adhere to this new legislation; facing fines of up to £200 per day if they fail to comply. It is unfair and unjust if Zoopla are not subject to these same rules.

"If a seller is offering their property for sale then this is clear marketing and as a result, they must comply with the new legislation. It is clear to me that Zoopla are behaving very irresponsibly, they are breaking the law and this practice has to stop, immediately."

In response to the allegation, Alex Chesterman, CEO of Zoopla, said: "TemptMe! is an innovative community feature that allows inactive property owners to share the hypothetical price at which they might consider selling - their 'dream price' in effect.

"TemptMe! is no different really to a casual conversation between neighbours over the fence or between friends in the pub indicating the figure that might 'tempt' them - a conversation we have all probably had at some point. TemptMe! is targeted at owners who might be thinking about selling at some point in the future and allows them to test the waters.

"The requirement for a Hip begins once the owner has decided that they actually want to market a property for sale, not when they start thinking about the fact they might sell and the price they would be keen achieve one day."

The changes which came in on April 6th have had a controversial response from those working in the property industry. Many leading organisations, such as the National Association of Estate Agents (NAEA), have called for the complete abolition of the Hip in next week's budget.

The AHIPP has since come back to say TemptMe! is public marketing. In response to this Mr Chesterton added: "A hypothetical conversation about how much you would potentially sell your house for is not a form of marketing - it's a hypothetical conversation.

"The notion that every homeowner who has a conversation about the sale value of their home needs a Hip to do so or faces a £200 fine is farcical. Zoopla's TemptMe! feature clearly states that homeowners will need a Hip if they do decide to sell their home."

Sarah Garrod